[This Document is the Property of His Britannic Majesty's Government.]
C. O.
18007
CHINA RAILWAYS.
REC
*
CONFIDENTIAL.
RES 16 JUN 11
[April 20.]
SECTION 2.
[14774]
No. 1.
(No. 102.)
Sir J. Jordan to Sir Edward Grey.-(Received April 20.)
(Telegraphic.) R.
YOUR telegram No. 70 of 19th April.
Peking, April 20, 1911.
China will not accept control of her loan funds by foreign banks at rates of interest involving heavy sacrifice, but she appears to me to have given binding engage- ments that funds deposited in official native banks will be forthcoming as required for constructive purposes. Control of expenditure is fully maintained.
Danger is not one of competition but of indefinite postponement of a railway, which is of infinitely greater importance to us than any of the other three Powers.
Arrangement is not an ideal one and is still open to rejection by groups, but such a favourable opportunity for a settlement is very unlikely to recur.
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